Trump mocks Fed Chair Powell as 'loser'... Pressures for rate cut

Korea Economic Daily

Summary

President Trump reportedly continued to pressure Fed Chair Powell for a rate cut, mentioning the possibility of an economic slowdown.
Dissatisfaction with Chairman Powell's policies led to a plunge in all three major indices of the New York Stock Exchange and the dollar hitting its lowest level, affecting U.S. credibility.
Despite Europe's consecutive rate cuts, uncertainty over the U.S. rate policy remains.

Trump pressures Chair Powell for rate cut

Criticisms like 'Mr. Too Late' pour out

U.S. President Donald Trump criticized Jerome Powell, the Chairman of the Federal Reserve (Fed), as a "major loser" while repeatedly pressuring for a rate cut.

On the 21st (local time), President Trump argued through the social network service (SNS) Truth Social that "if 'Mr. Too Late' (meaning his decisions are always late) and a major loser does not lower rates, there could be an economic slowdown."

He wrote, "Many people are demanding a preemptive rate cut." He emphasized that since his inauguration, energy and food prices have substantially decreased, and the prices of most other items are also on a downward trend, asserting that inflation virtually does not exist.

President Trump pointed out, "Europe has already cut rates seven times, but Chairman Powell is always too late."

Previously, over the weekend, he mentioned, "The dismissal of Chairman Powell can happen soon enough," and "I am not satisfied with him. I have let him know that if I want him out, he will be out really fast."

President Trump has continued his criticism since Chairman Powell's speech at the Chicago Economic Club on the 16th. Chairman Powell said at the time, "The current tariffs are expected to worsen inflation and slow economic growth," and "the central bank is likely to face challenging scenarios."

As Trump continues to pressure Powell, concerns have grown that U.S. credibility could plummet. Consequently, another 'Sell America' occurred, causing all three major indices of the New York Stock Exchange to plunge by more than 2%. The dollar hit its lowest level in three years, and U.S. assets collectively declined.

Kim Daeyoung, Hankyung.com reporter kdy@hankyung.com